Coinbase On An Acquisition Spree, Crypto Custodian Is the Latest Addition to Enable Access to NFTs, DeFi, & Web3 Apps
Coinbase is all set to acquire crypto custody firm Unbound Security, which specializes in multiparty computation (MPC) technology. This technology not only provides the security of a cold wallet but also usability for crypto like a hot wallet.
This latest acquisition is part of its focus on making NFTs, DeFi, and Web3 applications available to its users without needing cold storage.
About five months back, another crypto exchange Gemini acquired ShardX, a crypto custody firm also specialized in MPC technology.
Coinbase plans to integrate MPC technology across its retail and institutional products over time, it said in an interview.
While the deal's financial terms haven't been disclosed, Unbound Security has raised $40 million in funding to date.
The Nasdaq-listed company is actually on an acquisition spree, having acquired AI-powered customer support platform Agara, staking infrastructure firm Bison Trails, analytics platform Skew, and crypto data aggregator Zabo.
Last week, the cryptocurrency exchange acquired the crypto wallet startup BRD, as announced by both teams on Twitter.
The BRD team, which brings its expertise in self-custody for crypto wallets, “will be joining CoinbaseWallet to help accelerate web3 adoption,” said the exchange.
This acquisition, Coinbase said, will help its non-custodial Wallet enable more people to access crypto.
“We’re excited to be doubling down on our investment in self-custody and web3 in pursuit of increasing economic freedom in the world,” added the exchange, which became a public company in April, this year.
Originally launched as the open-source “breadwallet” app in 2014, the wallet has grown its user base to more than 10 million customers worldwide.
“Members of our team will be continuing our mission at Coinbase, where we will work together to bring the power of decentralization to even more users around the globe,” said CEO and co-founder Adam Traidman, and co-founder Aaron Voisine, in the official statement.
The executives assured its users that nothing would change in the BRD wallet app, and they may continue to transact normally. In the future, however, there will be an optional migration path for BRD wallet users to self custody with Coinbase Wallet. The details for the same, which it said will include a special gift, will be shared next year.
This acquisition sent the price of BRD token surged 875% in a day, at the time to as much as $1.58. As of writing, the BRD token is trading at $0.92, down 67% from its all-time high nearly four years ago.
Last week, Adidas Originals, the clothing line primarily focused on sneakers, also tweeted that it has partnered with Coinbase, calling it “probably nothing.” Coinbase’s response to this was a simple handshake emoji.